On 21st December 2012, UEB’s Vietnam Centre for Economic and Policy Research (VEPR) has organized successfully the Seminar on Economic and Policy Research Number 6 entitled “Should Vietnam apply capital controls or not?”. The topic of the Seminar is the subject of MSc. Nguyen Thi Vu Ha’s doctoral dissertation, who was the speaker at the seminar.
MSc. Nguyen Thi Vu Ha has received the bachelor and master degrees both in international economics, and is pursuing her PhD degree in this field at the UEB. She is currently a lecturer of the Faculty of Economics and International Business, UEB. She has chaired and participated in many projects organized by the UEB and VNU, Hanoi.
The participants of the seminar include Dr. Nguyen Duc Thanh and Dr. Pham Sy Thanh from VEPR, MSc. Nguyen Mai Thanh from Deposit Insurance of Vietnam (DIV) and MSc. Pham Van Dai, Maritime Bank, and other researchers, lecturers and students from various institutions and universities.
In addition to the positive effects, capital inflows could cause several macroeconomic and financial instability for receiving countries, especially ones have high level of capital account liberalization. Therefore, most countries have more or less used various instruments to manage and regulate foreign capital inflows and their impacts. The study shows that there are three groups of instruments to fulfill that task. They are the group of macroeconomic policies, the group of prudential policies and the group of capital controls.
Vietnam had seen a surge of capital inflows in 2006 - 2007 and applied a number of policy instruments to manage and regulate capital inflows and their impacts. Nevertheless, the effectiveness of those policies was not significant, especially capital controls have not been used widely and effectively.
This study examines the impacts of capital inflows on the Vietnamese economy and policy responses to manage and regulate those impacts recently. On that basis, the stuty has given some recommendations in this field for the near future.
During the presentation, the senior experts, researchers and students made critical comments to help MSc. Nguyen Thi VuHa to improve the study in both content and formation.